public issue of un-secured redeemable non-convertible debentures (ncds) august 2012 india infoline...
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Public Issue of Un-secured Redeemable Non-Convertible Debentures (NCDs)
August 2012
India Infoline Finance Limited
Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to general business plans and strategy of India Infoline Finance Limited (“Company” or “Issuer”) its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in Company 's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India.
This presentation is based on Prospectus dated August 27, 2012 and does not constitute an offer, invitation or solicitation to purchase or sell, any securities of Company and should not be considered a recommendation for any investor to subscribe or purchase any of Company's securities including non convertible debentures. Neither this presentation nor any other documentation or information (or any part thereof), delivered or supplied under or in relation to the non convertible debentures or other securities of the Issuer shall be deemed to constitute an offer or an invitation by or on behalf of Issuer.
Issuer, the Lead managers and Co-Lead Manager, as such, makes no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified, is only current as on the date of the Draft Prospectus. Issuer, the Lead Managers and Co-Lead Manager assume no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. Issuer may alter, modify or otherwise change in any manner the content of this presentation without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner.
The Company’s NCDs will not be offered, issued or sold in any country outside the jurisdiction of India, including the United States of America, whether pursuant to an exemption from, or in a transaction not subject to the registration requirements of applicable securities laws of any such jurisdiction.
The information presented here is not an offer or solicitation of any offer to purchase or sell any equity, non convertible debentures or any other security of Issuer.
Issuer is proposing, subject to market conditions and other considerations, a public issue of non convertible debentures (‘NCDs’). The Draft Prospectus and the Prospectus are available on the website of the National Stock Exchange of India Limited, Bombay Stock Exchange Limited, SEBI, Lead Managers and Co-Lead Manager. Any potential investor should note that investment in debt securities involves a high degree of risk. For further details, please see the section titled “Risk Factors” in the Prospectus. Investors are urged to take any decision to invest in the NCDs issued pursuant to the Prospectus solely on the basis of the disclosures made therein.
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Disclaimer
Contents
AnnexureAnnexure
3
Company OverviewCompany Overview
Parent OverviewParent Overview
Investment HighlightsInvestment Highlights
Industry OverviewIndustry Overview
Financial PerformanceFinancial Performance
Issue Highlights & StructureIssue Highlights & Structure
Business StrategyBusiness Strategy
Industry Overview
Indian Financial Services Sector
5
The Indian financial services sector has seen considerable broadening and deepening of the Indian financial markets
Despite the rapid growth of the financial services, India remains an under-penetrated market in terms of financial intermediation
Loans/GDP at 56% compares favourably with the levels of Asian peers which are in the region of 60%-130%
Non-Banking Finance Companies (NBFCs) are an integral part of the country’s financial system, catering to a large market of niche customers
Opportunity landscape for NBFC
Key enablers of growth for NBFC
Strong market penetration and high operating efficiency - NBFC have strengthened their presence in tier II and tier III cities where penetration is low
Product innovation and superior delivery - Given their deep understanding of customer needs, NBFCs focus on product innovation and customized product solutions. This helps the NBFCs maintain niche positioning and gives them an edge over the banks
6
Strong Industry Growth Drivers
Real GDP growth - India Loan / GDP ratio as at end 2010
Mortgage loans / GDP ratio Gold loan market in India (Rs bn)
Source: IMF Source: CEIC Note: For India, ratio is calculated for the YE 31 March 2011
Source: European Mortgage Federation, 2010, World Bank, 2010 Source: IMaCS
CAGR: 40.3%
7
Gold Industry Overview
• Gold loans viewed by the Government as effective means to meet the potential micro-finance demand in India• In 2006-07, Government of Tamil Nadu set a target of jewel loans worth 60 billion (75% of the total loan disbursement target) for co-operatives in Tamil
Nadu
• NSSO 2003 survey on situational assessment of farmers’ indebtedness in the country estimated that 60.4 % of rural households were farmer households, and of them 48.6% were indebted
• Indebtedness was highest in Andhra Pradesh (82%) followed by Tamil Nadu (74.5%) and Punjab (65.4%)
High Levels of Indebtedness
Policy Focus
• Given the recent rise in default rates in the personal loan category, banks have started focusing on the gold loans segment, as the segment offers attractive returns (though lower than personal loans) with very low levels of defaults
Increasing Interest of Lenders in the Segment
• Indian customers are experiencing changing psychographics (‘debt-averse psychology’) promoting creation of assets through growth in financial liabilities which is reflected in an annual growth of more than 35-40% in retail credit over the FY02-10
Changing Customer Attitudes and Preferences
Key Demand Drivers
Industry Overview
As of FY10, accumulated Gold stock in India is estimated at around 18,000 tonnes which translates into 10% of the total global gold stock
Annual demand in FY10 was around 700 tonnes, which witnessed sharp increase to over 900 tonnes in 2011
Organized gold loans market in India is estimated at around 350-400 billion in FY10 and estimated to increase to 520-550 billion in FY11
Organized gold loans market translates into 1.2% of the value of total gold stock in India and signifies a hugely under penetrated market with a large potential
Organized segment has registered a growth of 35-45% and is expected to continue growing at the same rate over the next few years
Gold loan market in India (INR bn)
Source: IMaCS
CAGR: 40.3%
Source: IMaCS
8
Mortgage Loan Industry Overview
• India has been witnessing rapid urbanization over the last 10 years. Urbanization rate stood at 28% in 2001 and is expected to have risen rapidly through 2011
• Rapid urbanization, favorable demographics (60% of the population are between age group of 15-59 years) are likely to create demand for new homes and hence demand for home loans
• Rising disposable income, tax incentives and affordable interest rates have lead to improved affordability of households • Per capita net national income grew 15% CAGR during FY05 through FY11
• Tax incentives were enhanced between FY03 and FY08 making home loans more affordable for households
Improved Affordability
Increasing Urbanization
• Average Ticket Size is projected to increase by 7-9% in 2011-12 despite stabilisation or price corrections in markets including Mumbai, Delhi-NCR region, Hyderabad and Chandigarh among others
• The ATS is projected to rise to 1.91 million in FY12 from 1.8 million in FY11, registering a y-o-y growth of 6.1 per cent as against 13.2 per cent witnessed in FY11
Rise in Property prices in non-metro cities to drive increase in Average Ticket Size
Key Demand Drivers
Industry Overview Mortgage loans / GDP ratio
Source: European Mortgage Federation, 2010, World Bank, 2010
Mortgage loans/GDP ratio stands at 9% in FY11. There is significant opportunity to grow this market driven by latent demand for housing, rising income levels and favourable affordability
Mortgage market has sustained over 25% CAGR over the last 10 years. Given the latent demand for mortgages, loan growth could be sustained at historical levels
The focus of most lenders in mortgage lending is confined to salaried urban middle to high income segments
The opportunity could be significantly expanded if the players were to focus on self employed segments as well. If the market landscape were to be expanded, potential growth rate could be even higher
Source: CSO, Crisil Research, IMF, European Mortgage Federation, GoI Census
Parent Overview
10
Overview of India Infoline Limited
India Infoline Ltd (IIFL), incorporated in October 1995, is one of the leading players in the Indian financial services space
• Services and products include retail broking, institutional equities, commodities and currency broking, wealth advisory, credit & finance, insurance broking, asset management, financial products distribution & investment banking
• Services and products portfolio caters to the diverse investment and strategic requirements of retail, institutional, corporate and affluent clients
IIFL has presence in over 4,000 business locations which include over 1,900 branches and over 2,300 registered franchisees, spread across 959 cities in 28 states and union territories in India
• The global footprint extends across geographies with offices in New York, London, Geneva, Hong Kong, Singapore, Dubai, Mauritius and Colombo
Listed on BSE Limited and National Stock Exchange of India Limited
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Corporate Structure
India Infoline Limited
India Infoline Finance Limited
IIFL Realty Limited
India Infoline Commodities
Limited
IIFL (Asia) Pte Limited
IIFL Wealth Management
Limited
IIFLCapital Limited
IIFL Capital Inc.
IIFL Securities Ceylon (Pvt)
Ltd
India Infoline Asset
Management Company Ltd
India Infoline Housing Finance Limited
India Infoline Distribution Company Limited
* The above chart does not cover all subsidiaries of IIFL* The above chart does not cover all subsidiaries of IIFL
Company Overview
13
Overview of India Infoline Finance Limited
India Infoline Finance Limited, is a subsidiary of IIFL, which has an investment in India Infoline Housing Finance Ltd (IIHFL) and India Infoline Distribution Company Limited
• IIHFL, subsidiary of India Infoline Finance Limited, received registration to operate as a Housing Finance Company from National Housing Bank in February 2009
• India Infoline Distribution Company Limited, a wholly owned subsidiary of India Infoline Finance Limited, is in the business of retail distribution of financial products including mutual funds, fixed income investments, RBI bonds and other savings products
India Infoline Limited
India Infoline Finance Limited
98.87 %98.87 %
Engaged in •Mortgage Loans•Capital Market Finance•Gold Loans•Healthcare Finance
India Infoline Housing Finance Limited
India Infoline Distribution Company Limited
100%100%
100%100%
• Engaged in housing finance
• Engaged in distribution of financial products like mutual funds, etc
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Product Suite
Mortgage Loans
Capital Market Lending
Gold Loans
• Loan book size of Rs 30,145 mn• Retail & Corporate Mortgage Loans - includes Home Loans and
Loans Against Property (LAP)• Average sanctioned tenure of 153 months for Home loans and 120
months for Loans Against Property
• Loan book size of Rs 7,497 mn• Includes Loan against Securities, Margin funding, IPO financing,
Promoter Financing and Open offer financing • Average tenure of 3-4 months
• Loan book size of Rs 27,706 mn• Includes finance against security of gold jewellery. Presence of
various schemes to suit borrowing requirements of customers
Healthcare Finance
• Loan book size of Rs 1,516 mn• Includes finance of medical equipment, receivables & brown field
projects, balance transfer of existing loan• Target customer base includes clinics, diagnostics/ pathology
centres, nursing homes, hospitals, medical/ dental colleges
Product wise split of Asset Book (Rs. mn)
14,303
28,587
64,934
1,479
1,290
-
485
3,012
2,530
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY10 FY11 FY12
India Infoline Finance Ltd Moneyline Credit LtdIndia Infoline Housing Finance Ltd
Company wise split of Asset Book (Rs. mn)
In FY 2012, Moneyline Credit Ltd merged into India Infoline Finance LimitedNote: All numbers are on consolidated basis
Key Products
All figures as of 31st March 2012
FY 12 Total 67,465 mnFY 10 Total 16,268 mn
CAGR: 103.6%
Business Strategy
16
Business Strategy
Enhancing the Product Bouquet
Building a robust IT Infrastructure
Widening the Distribution Network
Focused on expanding our product portfolio
Satisfy client needs by introducing new product lines
Aid portfolio diversification
Good reach important for our business
Currently integrating all product with the gold Loan Branch network based on credit experience of the team and competitors
The business utilizes a proprietary loan system
Additionally, best in class IT infrastructures from reputed vendors
Continued investment in IT infrastructure to aid growth
Continue to invest in strong operating procedures and risk management systems
Enhance ability to manage risks inherent to our business
Increase focus on diversified secured loan portfolios in niche and promising segments
Continue to source a 100% secured book with high asset quality
Strengthen Operating Procedures
Focus on Secured Retail Lending
India Infoline Finance Limited
Financial Performance
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Growth Parameters
2,381 2,340
5,195
9,536
0
2,000
4,000
6,000
8,000
10,000
12,000
FY09 FY10 FY11 FY12
CAGR: 58.8%691
538
923
1,054
0
200
400
600
800
1,000
1,200
FY09 FY10 FY11 FY12
CAGR: 15.1%
Total Income (Rs. mn) PAT (Rs. mn)
9,560 16,268
32,890
67,465
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY09 FY10 FY11 FY12
CAGR: 91.8%
Loan Book (Rs. mn)
12,108
12,644
13,412
14,282
11,000
11,500
12,000
12,500
13,000
13,500
14,000
14,500
FY09 FY10 FY11 FY12
CAGR: 5.7%
Networth (Rs. mn)
Number are on consolidated basis
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India Infoline Finance Limited – Key Ratios
Particulars FY 12 FY 11 FY 10 FY09
Consolidated
Yield on earning assets (%) 16.76% 14.31% 17.01% 15.28%
Cost of funds (%) 11.26% 9.43% 9.52% 9.67%
Net Interest Margin (%) 7.45% 7.17% 15.30% 13.95%
Net Interest Spread (%) 5.49% 4.88% 7.49% 5.61%
Debt Equity Ratio (x) 4.16 1.71 0.81 0.19
Return on net worth (%) 7.38% 6.88% 4.25% 5.71%
Return on assets (%) 1.63% 2.16% 2.94% 3.70%
Cost to income (%) 84.25% 74.20% 67.26% 63.90%
Cost to average assets (%) 12.44% 9.04% 8.59% 8.16%
Gross NPA (%) 0.56% 0.44% 0.60% 0.11%
Net NPA (%) 0.40% 0.36% 0.46% -
Standalone
Capital adequacy (%) 17.86% 29.95% 47.65% 97.77%
Tier I ratio (%) 15.46% 29.73% 47.65% 97.77%
Investment Highlights
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Key success factors
Strong parentage and Brand recall
Secured loan book and Strong asset quality
Adequately capitalized
• Leverage on IIFL’s strong brand linkages and large retail distribution network
• Over 99% of the Loan Book is secured with 0.4% NPA as of 31st March 2012
• Maintains capital adequacy higher than statutorily prescribed
Extensive distribution channels and Branch network
• Company has a branch network of 1,900 branches and a well established origination capacity• Has access to IIFL Group’s presence in over 4,000 business locations in India
Experienced management team and Board
• The board and the management team have a vast experience across relevant products & valuable domain knowledge
Well defined processes• Well defined business processes including robust credit approval mechanisms, effective credit
control/audit processes and risk management policies
Technology, Analytics and Credit bureau usage
• Robust loan management system and analytics ability. Extensive usage of the credit bureau and strong KYC procedures
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Strong Parentage and Brand recall
Diversified financial services company with a pan India presence
Listed on BSE and NSE
Well established brand among retail, institutional and corporate
investors in India
Brand associated with trust, knowledge leadership and high quality services
India Infoline Limited
Key S
erv
ice O
fferin
gs
Broking (1)
Wealth Advisory
Credit & Finance
Insurance Broking
Asset Management
Financial Products Distribution
Investment Banking
Note : 1. Includes retail broking, institutional equities, commodities and currency brokingNote : 1. Includes retail broking, institutional equities, commodities and currency broking
Distribution network across 4,000 business locations
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Secured Loan Book and Strong Asset Quality
Gross NPA On Consolidated basis
Net NPA On Consolidated basis
Loan Book(INR million)
0.11%
0.60%
0.44%
0.56%
0.00%
0.20%
0.40%
0.60%
0.80%
FY 09 FY 10 FY 11 FY 12
0.00%
0.46%
0.36%0.40%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
FY 09 FY 10 FY 11 FY 12
9,56016,268
32,890
67,465
0
20,000
40,000
60,000
80,000
FY 09 FY 10 FY 11 FY 12
As of 31st March 2012, over 99% of the Loan Book is secured
CAGR: 91.8%
24
Adequately capitalized
Capital adequacy ratio at 17.86% - well above the 15% stipulated by RBI
Note : Numbers are on Standalone basisNote : Numbers are on Standalone basis
25
Extensive Distribution Channels and Branch Network
We have historically expanded in markets that are of greater relevance
to the products we offer
Leverages IIFL’s existing network in over 4,000 business locations
across 959 cities in India
As of March 31, 2012, Gold Loans business is carried out through 1,297
branches
Mortgage business is carried out from 34 branches and has access to 79
relationship managers and 208 DSA’s. Business is now integrating with
the Gold Loan branch network based on credit experience of the
locations, competition presence and performance
Branch Network
26
Experienced Management Team and Board (1/3)
Nirmal Jain (Non-Executive Director)
• Promoter and Chairman of IIFL • He started his career in 1989 with Hindustan Lever Limited• Chartered Accountant, Cost Accountant and PGDBM from IIMA
R Venkataraman (Non-Executive Director)
• Co-Promoter and Executive Director of IIFL• Has over 20 years experience in the financial services sector• B.Tech from IIT, Kharagpur and PGDBM from IIMB
Pratima Ram (Wholetime Director & Chief Executive Officer)
• Has over 35 years experience in the financial services sector and extensive experience in Corporate and International Banking
• Holds a Masters Degree in Arts from University of Virginia
Nilesh Vikamsey (Independent Director)
• Elected member of the Central Council, the Apex decision making body of ICAI• A practicing Chartered Accountant for 25 years and is a Senior Partner at M/s Khimji Kunverji & Co., Chartered
Accountants, a member firm of HLB International
Board of Directors
27
V. K. Chopra (Independent Director)
• Former Whole Time Member of SEBI• Has over 39 years experience in the financial services sector including 3 years as chairman & Managing Director in
Corporation Bank
Mahesh Narayan Singh (Independent Director)
• Joined the IPS in 1967. He has over 35 years experience in public service • He is a Post-Graduate in Physics from Banaras Hindu University
Sunil Kaul (Non-Executive Director)
• Has over 20 years experience in corporate and consumer banking• B.Tech from IIT, Bombay and PGDBM from IIMB
Experienced and Distinguished Board of Directors
Experienced Management Team and Board (2/3)
Board of Directors (ctd..)
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Name Designation Experience
Dhruv Jain Chief Financial Officer
• Has worked in companies such as ITC Classic Finance Limited, Kotak Securities Ltd, Bharti Airtel Ltd & CitiFinancial Consumer Finance India Ltd
• He holds a Bachelor’s Degree in commerce from University of Kolkatta• He is a fellow member of Institute of Chartered Accountants of India (“ICAI”)
Mukesh Kumar Singh
Head –Gold Loan Business
• He joined India Infoline Group in 1997 as Research Analyst. Currently, as President, he is heading Gold Loan and Life Insurance distribution business of IIFL
• In his career span of 14 years in India Infoline Group, he has worked in various department such as research, distribution of financial products, stock broking, gold loan, setting up distribution network across the country
Sachin GroverHead –
Mortgage Business• A management graduate with over 13 years of work experience in service industry• In his previous stint with Citigroup India he was instrumental in launch & aggressive growth of Mortgage business
Anand BaruaHead –
Credit Underwriting
• He holds a Bachelor of Commerce ( Hons) from University of Delhi• Has 19 years of experience in Banking and Financial Services having worked with ANZ Grindlays Bank, Standard
Chartered and Citigroup
Priya KashyapHead –
Credit Policy
• Over 13 years experience with leading financial services companies including Citigroup• In her last stint, she was instrumental in formulating credit policies, expanding credit analytics and implementing
credit scoring models; also led the implementation of the first credit bureau in India
S. Venu Vice President –
Operations
• Over 14 years of experience in handling unsecured underwriting, backend operations, financial control operations for credit card business and branch retail asset and liability operations
• Currently handling the Loan Operations and expenses processing of the Company
Abizer Fakhruddin Motiwala
Vice President & Head – Loan Against Securities
• Over 16 years of experience with companies such as Birla Global finance limited, ECL Finance Limited and DSP Merrill Lynch Ltd
• He is a commerce Graduate from Mumbai University
Dilip Vaidya Company Secretary • He has worked in companies such Hathway Cable & Datacom Limited and Reliance Infrastructure Limited• He holds a Bachelor’s Degree in commerce from University of Mumbai and is an associate member of the Institute of
Company Secretaries of India
Experienced Management Team and Board (3/3)
Management Team
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Well Defined Processes (1/3)
Partnered with PWC & E&Y for risk evaluation and implementation of SOPsStrong Procedures
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Well Defined Processes (2/3)
Mortgage and Healthcare Process Flow
Internal Information flow External information flow
Customer Contact Point Credit Processes Ops Process
Collections
Audit
Well Defined Processes (3/3)
Gold Loan Process Flow
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CustomerService Complete file
with docs sent to OPS for storage
^Jewellery stored in the vault
Phone
Web
Visiting
Customer service handles complaints, inquiries and loan-fulfillment
NEFT or Chq printing instructions issued to
centralized OPS
Customer Service Post approval
Issuance of chq to customer or funds
transferred electronically
LoanExecution
Cash disbursal upto Rs. 10 Lac
Local Branch
Terms agreed with customer
Channels
Walk-In
Non salaried Professionals/
referralsSanction letter handed
over to customer at branch
*KYC documents, residence proof, app form, photograph, agreement, PAN card, end-use letter, SPDC & signature proof
*KYC documents, residence proof, app form, photograph, agreement, PAN card, end-use letter, SPDC & signature proof
Customer walks into the branch with jewellery & docs
**Valuation done by two internal
valuers
*Docs checked in branch & docket
completed & docs signed
Loan approval
OROR
**Two independent valuations done to ensure apt valuation amount and detect frauds. Lower of two valuations considered for loan purposes
**Two independent valuations done to ensure apt valuation amount and detect frauds. Lower of two valuations considered for loan purposes
#Jewellery stored in fire & burglar proof vaults. Vault operational with 2 keys – one set of keys is with BM & other with Valuer. Proper record are maintained of entry and exit.
#Jewellery stored in fire & burglar proof vaults. Vault operational with 2 keys – one set of keys is with BM & other with Valuer. Proper record are maintained of entry and exit.
Issue Highlights & Structure
India Infoline Finance Limited NCDs Issue – Key Highlights
33
Public Issue of un-secured redeemable non-convertible debentures of face value of Rs. 1000 each, (“NCDs”), aggregating upto Rs. 2,500 million.
The company has an option to retain over-subscription upto Rs. 2,500 million as well, aggregating to a total of upto Rs. 5,000 million if need be.
The NCDs are in the nature of subordinated debt and will be eligible for Tier II capital
Interest rate of 12.75% p.a. for 72 month NCDs (monthly, annual and cumulative options for interest payment)
Effective Yield: 13.52% p.a. (monthly basis), 12.75% p.a. (annual basis) and 12.75% p.a. (cumulative basis)
Rated ‘[ICRA] AA- (stable)’, and ‘CRISIL AA-/Stable’
Indicating high degree of safety for timely servicing of financial obligations
Such instruments carry very low credit risk
Issue opens on September 5, 2012
# With respect to applications received from Category III applicants, applications by applicants who apply for NCDs aggregating to a value not more than Rs. 0.5 million, across all series of NCDs, (Option I and/or Option II and/or Option III) shall be grouped together, (“Reserved Individual Portion”) while applications by applicants who apply for NCDs aggregating to a value exceeding Rs. 0.5 million, across all series of NCDs, (Option I and/or Option II and/or Option III), shall be separately grouped together, (“Unreserved Individual Portion”).
34
Issue Details
Issue Summary
Public Issue of un-secured redeemable non-convertible debentures
Upto Rs. 2,500 mn with an option to retain over-subscription upto Rs. 2,500 mn aggregating to a total of upto Rs. 5,000 mn
Rating ‘[ICRA] AA- (stable)’ and ‘CRISIL AA-/Stable’
Issue Open September 5, 2012
Issue Close September 18, 2012**
Intermediaries
Lead Managers
Co-lead Managers
Registrar
Listing BSE and NSE
Issue Structure (Basis of allotment on a first come first serve basis)
Category I (Institutional Portion) 40% of the Overall Issue Size
Category II (Non-Institutional Portion) 10% of the Overall Issue Size
Category III *(Unreserved Individual Portion) 25% of the Overall Issue Size
Category III *(Reserved Individual Portion) 25% of the Overall Issue Size
Note :* With respect to applications received from Category III applicants, applications by applicants who apply for NCDs aggregating to a value not more than Rs. 0.5
million, across all series of NCDs, (Option I and/or Option II and/or Option III) shall be grouped together, (“Reserved Individual Portion”) while applications by applicants who apply for NCDs aggregating to a value exceeding Rs. 0.5 million, across all series of NCDs, (Option I and/or Option II and/or Option III), shall be separately grouped together, (“Unreserved Individual Portion”).
** The subscription list for the Issue shall remain open for subscription upto 5 pm, with an option for early closure or extension by such period, upto a period of 30 days from the date of opening of the Issue, as may be decided at the discretion of the duly authorised committee of Directors of our Company subject to necessary approvals. In the event of such early closure of the Issue or extension of the Issue, our Company shall ensure that notice of such early closure or extension of the Issue is given as the case may be on such date of closure through advertisement/s in a leading national daily newspaper.
35
Terms of the Issue
Options I II III
Tenure 72 Months
Frequency of Interest Payment Monthly Annually NA
Minimum Application Rs.5,000 (5 NCDs) (for all options of NCDs, namely Options I, II and III, either taken individually or collectively)
In Multiples of 1 NCD after the minimum application
Face Value of NCDs (Rs. / NCD) Rs.1,000
Issue Price (Rs. / NCD) Rs.1,000
Mode of Interest Payment/Redemption
Through Various options available Through Various options availableRedemption through various options
available
Coupon (%) for NCD Holders 12.75% per annum 12.75% per annum NA
Effective Yield (per annum) 13.52% 12.75% 12.75%
Redemption Date72 months from the Deemed Date of
Allotment
Redemption Amount (Rs/NCD)Face Value of the NCDs plus any interest
that may have accruedFace Value of the NCDs plus any interest
that may have accrued Rs. 2054.50
Deemed Date of Allotment Date of issue of the Allotment advice
Nature of Indebtedness Un-Secured Redeemable Subordinated Debt
Annexure
37
India Infoline Finance Limited – Consolidated Profit and Loss account
Particulars (Amount in Rs. mn) FY 12 FY 11 FY 10 FY09
Income from Operations 9,085 4,711 2,121 2,280
Other Income 451 484 219 101
Total Income 9,536 5,195 2,340 2,381
Employee Benefit Cost 1,093 687 380 481
Other Expenses 1,730 742 454 539
Provisions & Write off 263 195 448 61
EBITDA 6,450 3,571 1,057 1,300
Interest & Finance Changes 4,798 2,213 280 424
Depreciation 150 17 12 16
Profit before tax 1,502 1,340 766 860
Total tax expense 448 418 228 168
Profit after tax 1,054 923 538 691
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India Infoline Finance Limited – Consolidated Balance sheet
Particulars (Amount in Rs. mn) FY 12 FY 11 FY 10 FY09
Current Assets 48,573 22,313 17,216 12,652
Non-Current Assets 28,497 16,426 6,210 2,872
Total Assets 77,799 38,937 23,481 15,595
Current Liabilities 30,936 13,919 8,970 1,730
Non-Current Liabilities 32,415 11,606 1,866 1,757
Total Liabilities 63,351 25,525 10,836 3,487
Share Capital 2,372 2,372 237 237
Reserves and Surplus 12,076 11,040 12,407 11,871
Networth 14,282 13,412 12,644 12,108
Total Liabilities and Networth 77,799 38,937 23,481 15,595
Thank You